Title: Relationship of Apollo Tyres with Nifty 50
Author: Ashwin Kambli ( MMS first year, Roll no. 22)
Kohinoor Business School, Kurla.
Introduction: Apollo Tyres Limited is an Indian multinational tyre manufacturing company headquartered in Gurgaon, Haryana. It was incorporated in 1972, and its first plant was commissioned in Perambra in Chalakudy, Kerala. The company now has five manufacturing units in India, one in the Netherlands[5] and one in Hungary.[6] It has a network of nearly 5,000 dealerships in India, of which over 2,500 are exclusive outlets.Objective: to find out beta of Piramal Pharma and find out significance.
Views and Reviews
Apollo Tyres Ltd. Has named Brad Persons as the company’s new national sales head for commercial tires. In this role, Brad will oversee the company’s sales initiatives within the U.S. and Canada for commercial tires.
Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Piramal Pharma (i.e. Y) were calculated.
Data Analysis: Equation
“Y= 1.032-1.569X”
N = 32
R2= 0.1528
F= -2.326
The above Equation shows the relationship between the Nifty 50 (X) with piramal pharma (Y). The negative sign means the negative relation meaning that if nifty stock rises, then piramal pharama stock fall and vice versa. If nifty 50 rises by 1 unit piramal stock fall by 1.56 units. N means there are 32 observations. T is -2.326, is less than tabulated T (t.05,30 2.042). T stat for b is statically not significant. R2 is 0.1528 which means 15.28 % of Y is explained by X. F is 5.4108 which is greater than the table value ( F.05, 1, 30 4.1708). So, overall, the model is not statistically significant @5% level of significance.
Conclusion: If b<1, is good for long term investment
Reference: https://en.m.wikipedia.org/wiki/Apollo_Tyres